What is Customer Churn?Churn Help

  • Predicting when a customer will stop being a customer
  • Help keep customers longer – increases lifetime value
  • Reduces customer acquisition costs
  • Alerts management to problem accounts

Churn Process Example

We gather data and compare data from all customers

  • We compare data over time – looking for unwanted changes
    • Purchase less often
    • No longer purchasing key items
    • Slowing payments
  • We provide action items
    • Report Form
    • A basis for Prescriptive Analytics and actions
      • Set processes in place to automatically contact at-risk customers
  • We fine-tune and customize your model to improve over time

Common Factors in Determining Customer Churn

Factors = Influencing VariablesChurn choices

  • Longevity
  • Volume Trend
  • Revenue Trend
  • Order Frequency
  • Size of Organization
  • Customer Type
  • Salesperson
  • Tenure with Salesperson
  • Contact Level
  • Time to Pay Trend
  • Response Rate to Messages

Translating business terms to machine learning terms is key to creating a good model

Views of Churn Prediction

Predictions can be viewable in reports or can be embedded into CRM for action triggers.

Churn Predictions

Benefits to Reduced Customer Churn

Churn Benefits

  • Happier customers
  • Prevention of future lost revenue
  • Increased profits when the customer increases purchases again
  • Less demand or new customer generation to make up for future losses
  • Salespeople realize they are being monitored – for their own good!
  • Protection from encroaching competitors


Example 4 Runaway Shipping Costs

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